Norwegian Billionaire Halvorsen’s Top 10 Stock Picks

4. Philip Morris International Inc. (NYSE:PM)

Viking Global’s Q3 Stake: $1.09 billion

Number of Hedge Fund Holders: 75

Philip Morris International Inc. (NYSE:PM), a leading multinational tobacco corporation, operates in over 180 countries and is renowned for its flagship product, Marlboro, cementing its place among “Big Tobacco” leaders.

In its third-quarter earnings call, Philip Morris International Inc. (NYSE:PM) reported robust organic revenue growth and a notable year-over-year rise in adjusted diluted earnings per share. These results were driven by strong demand for its smoke-free products, IQOS and ZYN, alongside growth in the combustibles segment. IQOS volumes surged 15% year-over-year, with significant gains in Japan and Europe, while ZYN shipments in the U.S. grew by over 40%. The company also raised its full-year guidance, forecasting 2%-3% volume growth, 9.5% organic net revenue growth, and 14%-15% adjusted diluted EPS growth.

On October 30, Barclays reiterated its Overweight rating on the PM stock and raised its price target from $145 to $155. The firm views Philip Morris International Inc. (NYSE:PM) as the top-performing large-cap staple company, citing its fiscal year 2024 guidance. Expectations include 9.5% organic revenue growth, 14%-14.5% EBIT growth, and 14%-15% EPS growth excluding foreign exchange impacts. Despite a projected 6% FX headwind, EPS growth is estimated at approximately 9%, with potential to exceed 10% under more favorable FX conditions. A significant contributor to this optimism is ZYN’s strong performance in the U.S., which is expected to account for about 50% of the incremental EBIT growth and provide a meaningful boost to earnings.